Why Non-Profits Will Succeed in a Recession Economy

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The start of the recession in the United States was in part due to large corporation investments in unstable or unsure companies.  The result of this was a plethora of huge deficits and the losses of pensions and 401ks for thousands of Americans, not to mention the emotional toles and damaged peace of mind.  Since then, the economy has been mired in an unstable status and people and companies are taking less risks with their money.

Some make the argument that since companies have less resources, donations and corporate sponsorships for non-profits will decrease dramatically.  This assumption is misguided and over-exaggerated.  Though it is true companies and individuals have less capital to work with, they will use that capital in the most efficient and certain way.  They want to know what they are getting for their money and where their money is going.  They most importantly want a sure return on their investment.
Non-profits fit the mold of these conditions perfectly because investors know exactly what they are getting, and they know what their money will be used for.  The social return is certain and the risk is very low.  Non-profits are like treasury security bonds with a social return.

Barakat provides a transparent view of their financial information showing what percentage of donations go where. When people invest in Barakat, they know what percentage goes towards its education programs, and what percentage is used for running the organization.  Investing in Barakat is one of the most certain things one can do with their money.  By donating to Barakat, one is investing in women and children who with education, will lead this world in the future.  That’s an investment with a return that is priceless.

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